By Sarah Lizee
Olympia, Wash., May 22 – Royal Bank of Canada priced $2.5 million of leveraged steepener notes due May 22, 2023 linked to the 30-year Constant Maturity Swap rate and the two-year Constant Maturity Swap rate, according to a 424B2 filing with the Securities and Exchange Commission.
The interest rate will be 3.375% for the first two years. After that, the interest rate will be 8.5 times the spread of the 30-year CMS rate over the two-year CMS rate, subject to a minimum of 0%. Interest will be payable quarterly.
The payout at maturity will be par.
The notes are non-callable.
RBC Capital Markets, LLC is the agent.
Issuer: | Royal Bank of Canada
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Issue: | Leveraged steepener notes
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Underlying rates: | 30-year and two-year Constant Maturity Swap rates
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Amount: | $2.5 million
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Maturity: | May 22, 2023
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Coupon: | 3.375% for first two years; after that, 8.5 times the 30-year CMS rate over the two-year CMS rate, subject to a 0% floor; payable quarterly
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Price: | Variable
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Payout at maturity: | Par
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Call option: | Non-callable
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Pricing date: | May 18
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Settlement date: | May 22
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Agent: | RBC Capital Markets, LLC
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Fees: | 0.5%
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Cusip: | 78014RAD2
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